Failure to comply with consumer guarantees

The ACCC, along with state and territory consumer protection agencies, works closely with businesses and industry associations to ensure businesses understand their rights and obligations under the consumer guarantees. The ACCC and state and territory consumer protection agencies have also developed a template refunds and returns policy that businesses are able to display in their stores. These are available to order, free of charge, from the ACCC Small Business Hotline: 1300 302 021 or from our refunds and returns page.

State and territory consumer protection agencies work with consumers and business to conciliate individual cases.

The ACCC may take action in circumstances where a business fails to comply with a consumer guarantee. As with all enforcement and compliance decisions, the ACCC’s decision to take action against a business will be made in accordance with its Compliance and Enforcement Policy.

Penalties for misleading consumers

Consumer guarantees issues may also arise because businesses have misled consumers about their rights under the consumer guarantees or have given consumers misleading information about their rights or what a product or service can do.

Businesses should be aware that if they provide or make a false or misleading representation about products or services or consumers rights under the consumer guarantees, this is likely to breach the Australian Consumer Law.  Where businesses make false or misleading representations, they can face:

  • an infringement notice with penalties of up to $66 000 for listed corporations, $6600 for corporations and $1320 for individuals for each alleged offence
  • pecuniary penalties of up to $1.1 million for corporations and $220,000 for individuals for each alleged offence
  • criminal penalties of up to $1.1 million for corporations and $220,000 for individuals for each alleged offence.